Kongsberg Gruppen: From loss to profit

“The Deck Machinery part of this division provides deck equipment. This means everything from small anchor winches to large winches that can be used for several types of vessels including fishing vessels, merchant fleet, ships offshore, tugboats and the naval fleet. Motion Control provides steering gear for a wide range of vessels. Our stabilizers help secure cargo, stabilize naval vessels and ensure you have an enjoyable cruising voyage,” says Lisa Edvardsen Haugan.

How would you describe the situation in this area when KONGSBERG acquired the activities of Rolls Royce Commercial Marine (RRCM)?

“Historically, DMMC was one of the most profitable parts of RRCM, especially during the offshore boom. This was largely due to its strong position in offshore anchor handling. Additionally, we are recognized for our hydraulic technology Back when the oil and gas industry was very active, we focused heavily on what was then a profitable market, while other market segments received less attention. the oil price in 2014 and 2015 meant that New construction in the offshore segment came to a halt quite abruptly and DMMC was hit hard by this When KONGSBERG came in 2019 it was a loss making entity and something needed to be done something to reverse the trend.

Railway freight cranes were developed to improve safety on deck, where the crew must manage heavy mooring lines and deck cargo at sea.

You came from KM financial operations and took over an operational division. How would you describe this transition and what challenges have you encountered as a manager?

“In many ways, I didn’t feel like the transition was that big. entity and function, being a leader is all about mobilizing people and making sure everyone is working towards a common goal. The main job is to build and motivate a strong team that can complement each other.”

How did you start transforming Deck Machinery & Motion Control?

“At the start, it was about creating a common understanding and recognition of the challenges we faced. It became apparent early on that we needed to adapt our workforce to the current level of activity and market outlook. In addition, we could not avoid implementing structural measures to gain insight and insight into the specific circumstances of each part of the business.We focused on quickly identifying where the ship “leaked” and where we needed to implement additional measures. So we chose to start by organizing the DMMC with a focus on the functions of the organization. This gave us the necessary information and we were able to launch a number of improvement activities that are still ongoing. We are now in a new phase of growth, so we have chosen a slightly different way to organize the division” .

Do you have any management principles that are close to your heart and on which you relied in this work?

Legend

“If I had to highlight three things, they would be: clear objectives, local freedom of action and at the same time tight leadership. In my experience, it is difficult to sit at the top and know what is appropriate. to every part of a large division. Our organization has incredibly knowledgeable colleagues who generally know what measures work best in their area. However, it is important to be close so that we can set the right goals and, above all, to challenge people a bit when At the same time I get a lot of energy to keep understanding and learning even more about all parts of the division We have many employees who are extremely proud of where they work and who are very willing to share their knowledge and experience with me”.

Among other things, you emphasized the values ​​of the company in your communication with the employees of the division. Was it positive?

“Our values ​​mean a lot to me personally and I believe they are key elements of our culture. That’s why I used them a lot when communicating, and in my opinion, these values ​​help to create a common language and an expectation of how we should act as ambassadors of KONGSBERG. Moreover, I think they help us to unite as an organization across national borders”.

What actions have been taken that have meant the most to reverse the trend
Deck Machinery & Motion Control Division?

“Without a doubt, it was the efforts of all functions and departments of DMMC that counted the most. There was no single unit that created the improvements, these were due to broad mobilization. So, it is not without reason that I like to say that this division is made up of many heroes. I am humbled by the efforts of all employees, especially since this organization has been affected by many upheavals in the over the past 5-6 years. It probably took a lot for individuals to roll up their sleeves and redouble their efforts.”

How would you describe the current situation of Deck Machinery & Motion Control?

“We are very proud of the improvements we have managed to make over the past few years and, as Egil often reminds us, profitable operations provide new opportunities. We are now in a position where our profitability is acceptable, given our history, and looking at new sales and aftersales together.However, our ambition is clearly to improve our profitability, particularly in the area of ​​new sales, and we will actively work on the measures already in place. It’s about focusing on the customer and making sure we’re always the preferred choice.”

What are the future goals of Deck Machinery & Motion Control?

“As well as operating as efficiently as possible, we will focus on growth. We see a number of ways to expand with our more standardized products towards merchant, marine and tugboats. We are also seeing a growing interest from the naval market for a wider range of our products than before. This is very interesting and allows a wider collaboration with a wider part of KONGSBERG. In addition, we have new concepts for markets growing industries such as aquaculture and offshore wind, which I have great confidence in and look forward to working with so I am very optimistic on our behalf and think the next few years will be a very exciting journey”.

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